Prime Minister Narendra Modi on September 14 began a two-day review of prevailing economic issues including fall in the rupee, rising fuel prices and reforms measures needed to boost growth, official sources said.

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The meeting comes against the backdrop of the Indian currency falling around 6 percent since August to touch an all-time low of 72 level this week. Petrol and diesel prices have also touched record highs.

The government has been under pressure from the opposition to stem the rupee fall and cut taxes to check surging fuel prices.

The Finance Ministry has ruled out any cut in taxes to ease the burden on consumers, saying it does not have the bandwidth to lose any revenue without developmental spending being cut. The government can ill-afford this in an election year.

Petrol price Friday climbed to an all-time high of Rs 81.28 per litre in Delhi, while in Mumbai it inched up to Rs 88.67. A litre of diesel in the national capital was priced at Rs 73.30 and Rs 77.82 in Mumbai.

Every Rs 2 cut in the price of petrol and diesel would lead to a revenue loss of around Rs 30,000 crore, as per ministry estimates.

The government has so far maintained that it would not take any knee-jerk action as a response to the fall in rupee or spike in fuel prices.

Data from the Commerce Ministry has shown better than expected trade deficit at $17.40 billion in August, down from $18.02 billion a month ago. Exports grew 19.21 percent to $27.84 billion while imports rose 25.41 percent to $45.24 billion.

Also, boosting the government was retail inflation rate easing to a 10-month low of 3.69 percent and wholesale inflation to 4 month low of 4.53 percent in August.